Borrowing activity picks up pace

Loan activity is rising again – but that doesn’t mean banks have loosened the gates.

 The latest Australian Bureau of Statistics data show the number of new loan commitments (excluding refinancing) in the December 2025 quarter was 13.4% higher than a year earlier. Under the surface:

  • Owner-occupier activity rose 7.4%.
  • First home buyer loans increased 9.1%.
  • Investor activity jumped 23.6%, with investor loans hitting a quarterly record
That tells us confidence is improving. But it doesn’t mean credit is flowing freely.
 
Lenders are still assessing serviceability carefully. Buffers remain in place. And from 1 February, limits on high debt-to-income lending add another layer of discipline at the margins.
 
What this means for you
More activity usually means more competition – both for property and for certain loan types. If you’re buying, your preparation matters. If you’re investing, your structure matters.
 
The key lesson? Rising activity rewards borrowers who understand their numbers before they step into the market.

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